A Critical Analysis Of Corporate Fraud And Its Various Forms Under The Companies Act, 2013
- IJLLR Journal
- 1 day ago
- 1 min read
Vishal Katheria, Amity Institute of Advanced Legal Studies, Amity University, Noida
ABSTRACT
Corporate fraud has emerged as a significant challenge in modern business environments, undermining corporate governance, investor confidence, and economic stability. It encompasses a wide range of illegal and unethical activities carried out by individuals or organizations to gain undue financial or strategic advantage. This paper examines the various types of corporate fraud prevalent in the corporate sector, including financial statement fraud, asset misappropriation, insider trading, accounting fraud, cyber fraud, and market manipulation.
The study analyzes how such fraudulent practices are executed, their impact on stakeholders, and the legal framework governing them in India, particularly under the Companies Act, 2013 and the Securities and Exchange Board of India regulations. It further highlights the increasing complexity of fraud in the digital era and the need for robust regulatory mechanisms, internal controls, and ethical corporate culture.
By exploring the classification and characteristics of different types of corporate fraud, this paper aims to provide a comprehensive understanding of the subject and emphasize the importance of prevention, detection, and strict enforcement. The study concludes that strengthening corporate governance and regulatory oversight is essential to mitigate fraud risks and ensure transparency and accountability in the corporate sector.
